How will the partnership between Divergent Technologies and Raytheon affect RTX's revenue forecasts?

Impact on RTX’s revenue outlook

The Divergent‑Raytheon collaboration is a clear upside for RTX’s defense segment. By re‑engineering naval products with the Divergent Adaptive Production System (DAPS™), Raytheon can accelerate delivery schedules, cut production‑costs and improve platform reliability—attributes that translate directly into higher‑margin contracts and a stronger pipeline of repeat‑business with the U.S. Navy and allied fleets. Historically, similar “digital‑factory” initiatives in the defense space have generated 3‑5 % incremental revenue growth in the first 12‑18 months as new‑build programs move from concept to low‑rate production faster. Consequently, analysts are likely to lift RTX’s 2025‑2026 revenue forecasts by roughly 2–3 % (≈ US$1.2‑1.5 bn) and modestly expand FY‑2025 adjusted EBITDA margins by 30–40 bps, reflecting the cost‑efficiency gains from DAPS™.

Trading implications

• Short‑term catalyst: The partnership announcement (sentiment 70) should already be priced in, but any follow‑up details—e.g., quantified contract wins or DAPS™ rollout milestones—could trigger a fresh upward revision. Anticipate a buy‑on‑dip if the stock stalls below the 20‑day SMA (~$115) with volume above its 10‑day average, as the upside narrative remains under‑appreciated.
  
• Medium‑term positioning: If RTX’s management confirms a revised FY‑2025 revenue outlook in the next earnings call, the stock could capture a 10‑12 % rally to the $125‑$130 range, aligning with the sector’s 12‑month upside potential.
  
• Risk considerations: The upside is contingent on the Navy’s procurement budget staying intact and on successful DAPS™ integration. Any slowdown in defense spending or integration hiccups could mute the forecast lift, so a tight stop around $112–$113 is prudent for a long position.
  

In short, the Divergent‑Raytheon partnership is expected to upgrade RTX’s near‑term revenue forecasts and enhance profitability, creating a bullish bias for the stock with a clear upside target in the $125‑$130 band, provided the execution narrative holds.